Transcript Promoting the Green Economy for Africa`s Structural Transformation

Afeikhena Jerome
Nigeria Governors’ Forum
Abuja, Nigeria
African Economic Conference
Addis Ababa, Ethiopia
25th – 28th October, 2011
Afeikhena Jerome AEC 2011
1
•
•
•
•
Introduction:
Conceptual Issues
The Green Economy in Africa
What is to be done
Afeikhena Jerome AEC 2011
2




The concept of “green economy” is gradually gaining currency in
mainstream policy discourse unlike in the recent past when it was
confined to Environmental Economics.
The recent traction for a green economy concept has no doubt been
aided by widespread disillusionment with the prevailing economic
paradigm as a result of the many concurrent crises experienced during
the very first decade of the new millennium, especially the financial and
economic crisis of 2008 to 2009 (crises in climate, biodiversity, fuel,
food, water etc).
Africa. No doubt, has been at the receiving end of the intertwined
impacts of these challenges.
At the same time, several agencies, most especially UNEP, have since
1998 been pushing for a viable alternative economic paradigm – one in
which material wealth is not delivered perforce at the expense of
growing environmental risks, ecological scarcities and social disparities.
Afeikhena Jerome AEC 2011
3

A recent publication by UNEP, 2011,Towards a Green Economy:
Pathways to Sustainable Development and Poverty Eradication - A
Synthesis for Policy Makers, argues forcefully that Green economy is
not a drag on growth but rather a new engine of growth; a net
generator of decent jobs, and also a vital strategy for the elimination
of persistent poverty.


It also makes a compelling e case for investing 2% of gross domestic
product (GDP) in 10 key sectors of the economy - agriculture,
buildings, energy supply, fisheries, forestry, and industry including
energy efficiency, tourism, transport, waste management and water
- can trigger greener, smarter growth, while fighting poverty. Such
an investment would set up the transition towards a green economy,
defined as low carbon, resource efficient and socially inclusive.
We briefly explore how Africa can make the transition to a Green
Economy
Afeikhena Jerome AEC 2011
4
There is currently no international consensus on the definition of
green economy. However, UNEP offers the following working
definition: “a green economy is one that results in improved human
well-being and social equity, while significantly
environmental risks and ecological scarcities”


reducing
It challenges two myths:
The trade off between Economic growth and environmental
sustainability
Green growth is a luxury for developing countries. It is not only
relevant to developed countries but also a key catalyst for growth
and poverty eradication in developing countries. ‘’ It is not a
straitjacket, nor is it prescriptive.”
Afeikhena Jerome AEC 2011
5



Africa’s economic growth in the past decade has been strong, but
not inclusive. Poverty remains persistent and pervasive (UNECA
Economic
Report
on
Africa
2011).
Unemployment
and
underemployment remain high even during times of rapid economic
growth.
The current patterns of production and consumption could lead to
the unsustainable utilisation and collapse of natural ecosystems
which underpins our social and economic growth.
Africa is lagging behind the rest of the world in transiting towards
the Green Economy. Apart from South Africa, Kenya, Botswana and a
few other countries, awareness is low but growing.
Afeikhena Jerome AEC 2011
6


At the policy level:
African Ministers of Environment, Bamako declaration on the environment for
sustainable development, African Ministerial Conference on the Environment,
Thirteenth session, Bamako, Mali, 21–25 June 2010:
“We, the African Ministers of Environment, declare our resolve to urge all countries fully
to explore opportunities for building green economies, through, among other things,
the development of clean technologies, renewable energies, water services, green
transportation, waste management, green buildings and sustainable agriculture and
forests.”

African Ministers of Finance, Planning and Economic Development,
Ministerial Statement, 4th Joint Annual Meetings of the AU Conference of
Ministers of Economy and Finance and ECA Conference of Ministers of
Finance, Planning and Economic Development, Addis Ababa, Ethiopia 28 – 29
March 2011:
“We will play our part to spearhead the transition to a green economy in Africa, inter
alia, by supporting the necessary systemic and institutional transformations to ensure
that green economies contribute to sustainable development and poverty reduction
objectives, including improving welfare and the quality of life of Africa’s citizens. We
call on all development partners to accompany Africa in this journey”
Afeikhena Jerome AEC 2011
7



Commendably, Kenya introduced a feed-in tariff on electricity from
wind, biomass and small hydropower in 2008, and extended the
policy in 2010 to include geothermal, biogas and solar energy
resource-generated electricity.
World-wide, close to 4,900 CDM projects are up and running or in
the pipeline as at March 2010 - with the lion's share in the big
developing economies such as Brazil, China and India. So far they
have been implemented in about 30 developed countries and in 17
developing countries.
Africa has just over 120 carbon market projects up and running or in
the pipeline, in areas ranging from wind power to forestry schemes.
Afeikhena Jerome AEC 2011
8
It is increasingly clear that business as usual in Africa and
around the world is no longer an option:
The Rio+20 Summit which has adopted “green economy” as a key
theme in the context of sustainable development and poverty
eradication thus offers a real opportunity to scale-up transition under
way across this region and embed the concept of green economy in
Africa.
African Countries should be assisted to develop Green Economy Plans
against the backdrop that governments alone cannot manage and fund
the transition to a green economy and that the private sector and civil
society could play a fundamental role.
The enabling conditions are presented in the next chart.
Afeikhena Jerome AEC 2011
9
Enabling Condition as outlined by UNEP 2011
Afeikhena Jerome AEC 2011
10
Thank you for your attention
Email: [email protected]:
[email protected]
Afeikhena Jerome AEC 2011
11